Last week, you might have seen that Bridgewater Bancshares, Inc. (NASDAQ:BWB) released its quarterly result to the market. The early response was not positive, with shares down 4.8% to US$14.71 in the past week. Revenues were US$26m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.27 were also better than expected, beating analyst predictions by 11%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Bridgewater Bancshares
After the latest results, the two analysts covering Bridgewater Bancshares are now predicting revenues of US$125.0m in 2025. If met, this would reflect a notable 18% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 21% to US$1.30. Before this earnings report, the analysts had been forecasting revenues of US$122.9m and earnings per share (EPS) of US$1.31 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.9% to US$17.83. It looks as though they previously had some doubts over whether the business would live up to their expectations.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Bridgewater Bancshares' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bridgewater Bancshares to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Bridgewater Bancshares. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Bridgewater Bancshares you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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